On or about 5 August 2019, the Variable Capital Companies (Miscellaneous Amendments) Bill was tabled in Parliament to introduce a tax framework for variable capital companies (VCCs) incorporated under the Variable Capital Companies Act 2018 (VCC Act).
On or about 24 July 2019, the Monetary Authority of Singapore (MAS) has separately issued a consultation paper on the “Proposed Framework for Variable Capital Companies Part 3. The public consultation has closed on 24 August 2019.
On or about 13 January 2020, the following legislation has been published:
- Variable Capital Companies Act 2018 (Commencement) Notification 2020 (S 18 of 2020)
- Variable Capital Companies (Miscellaneous Amendments) Act 2019 (Commencement) Notification 2020 (S 19 of 2020)
- Variable Capital Companies Regulations 2020 (S 20 of 2020)
- Variable Capital Companies (Application of Bankruptcy Act Provisions) Regulations 2020 (S 21 of 2020)
- Variable Capital Companies (Further Modifications to Incorporated Provisions) Regulations 2020 (S 22 of 2020)
- Variable Capital Companies (Identical Names) Regulations 2020 (S 23 of 2020)
- Variable Capital Companies (Maximum Amount Payable in Priority in Winding Up) Regulations 2020 (S 24 of 2020)
- Variable Capital Companies (Modifications to Subdivision 5 of Division 4 of Part X of Companies Act for Sub-funds) Regulations 2020 (S 25 of 2020)
- Variable Capital Companies (Fees and Late Lodgment Penalties) Regulations 2020 (S 26 of 2020)
- Variable Capital Companies (Transfer of Registration) Regulations 2020 (S 27 of 2020)
- Variable Capital Companies (Dissolution of Sub-funds and Striking Off of VCCs’ Names) Regulations 2020 (S 28 of 2020)
The VCC Act provides for the incorporation and operation of a new corporate structure, the Variable Capital Company (“VCC”), to cater to the needs of investment funds. The introduction of the VCC structure is expected to encourage fund managers in Singapore to domicile their investment funds in Singapore and help strengthen Singapore’s position as a full-service international fund management centre.
The VCC Act contains consequential amendments to the Income Tax Act and Goods and Services Tax Act and it is expected that the VCC framework will be operational in 1Q 2020.
The Variable Companies Act 2018 (No 44 of 2018) can be accessed at Singapore Statutes Online.
Source: